Oct 07 2008

Rescuing Renewables

The long struggle to extend federal tax credits for the renewable energy industry resembled a season of The Perils of Pauline: By one count it took nine votes in Congress before the long-awaited investment and production credits finally passed last week as part of the $700 billion financial rescue package.

The solar industry won an eight-year extension of a 30 percent credit for residential and commercial solar power installations. One industry-sponsored study predicts that this credit will create more than 400,000 new jobs in the solar power industry.

The bill also extends production tax credits to the biomass, geothermal and marine (wave and tidal) energy industries for two years, and to the wind power industry for one year.

By spurring the development of renewable energy, the credits promise a win for the environment, a win for the increasingly depressed U. S. economy, a win for emerging industries, and a win for PG&E and other utilities that have contracted with renewable power companies to provide cleaner energy for their customers.

Since the start of 2007, PG&E has contracted for more than 2,600 megawatts of new renewable power. Many of those projects are still under development and count on tax credits as a condition of financing and development. Failure to renew the credits could have put them, and hundreds like them around the country, in jeopardy.

PG&E worked hard to help Congress understand the need to act, in partnership with organizations such as Alliance to Save Energy, Business Council for Sustainable Energy, Clean Energy Now, Edison Electric Institute, and Solar Energy Industry Association. PG&E chief executive Peter Darbee stressed the critical need for tax incentives in an address to the 2008 United Nations Investor Summit on Climate Risk and in a lead opinion column in the San Francisco Chronicle, among other places.

Extension of the tax credits removes the single biggest hurdle to the development of renewable power, but not the only one. As the California Public Utilities Commission (and many other parties) have noted, continuing challenges include the cost and delay in building transmission to serve new renewable power plants, developer inexperience, financing uncertainty, and site control and permitting.

Posted by: Jonathan Marshall | Comments (0) digg delicioussend to a friendprint entry

 

Categories

Energy , Environment , Solar , Waves , Wind

Leave a comment


E-mail this post


Your Name:
Your Friend's Email:

Subscribe to Blog rssIcon

> Go

Recent Comments

  • This is being rather generous to Lutz. 1. The "Volt", in no small part, will be targeted as a product to people who care about energy and environmental issues. These people don't embrace Lutz' antideluvian concepts of rejecting science. How responsible is it for a GM executive to be rejecting the science? 2. As well, Lutz didn't exactly sound too enthusiastic about the Volt itself. 3. And, GM public communications has 'defended' Lutz in rather absurd ways. -A Siegel
    > view entry


  • This article is right on - small businesses have a huge role to play in sustainability. Not only do they add up in aggregate, but many small businesses operate in industries that can have a significant environmental impact depending on the exact practices, like dry cleaners, auto repair shops, etc. Green is also starting to affect the bottom line more and more, customers are increasingly voting with their feet for more sustainable businesses as can be seen from the growth of sites like http://www.ecovian.com. This is also a huge opportunity for small businesses to leapfrog their bigger brothers by being more agile in adopting these measures. -Emily
    > view entry


  • Great entry, Katie. Love the level of detail you managed to get in there! Probably won't be able to compete with coal and oil any time the next decade, but definitely a great technology to look into! Keep it up :) -Rune (Norway)
    > view entry


Recent Posts